What is comprehensive financial planning

What is comprehensive financial planning
Adam Ludwig, CEO/Wealth Advisor

One of our core values at Anchor Wealth is optimism. We talk about it like this: We strive to instill hope and expectancy into your financial hopes and dreams because outlook affects results. 

When a new client meets with one of our advisors, they are often struck by how little we talk about the minute details of their finances and how much we discuss their emotional state as it relates to their beliefs around money. This approach is unique to Anchor and it is built on the understanding that emotions and behaviors prevent 80% of people from achieving their financial goals. If we can get our clients invested in the process, making investment decisions becomes easier for them. This is the basis of a truly comprehensive financial plan.

A comprehensive financial plan is a realistic look at your money situation. It takes into account all aspects of your finances and creates a guide to achieve long-term goals through consistency and accountability. A complete comprehensive financial plan will look at more than just your investments. 

Here is everything that should be accounted for in your comprehensive financial plan: 

  • Current income
  • Income growth potential
  • Debts
  • Debt elimination plan
  • Social security 
  • Pensions
  • Alternative streams of income
  • Risk protects (life insurance, health  insurance, disability protection)
  • Potential inheritances
  • Current investments
  • Plan to grow investments
  • A goal

A comprehensive financial plan is a pragmatic look at a very emotional matter. When we create a comprehensive financial plan, it sets the stage for optimism in our clients and that is the first step towards success. In all of my years as an advisor, I have never grown tired of the lightbulb moment that occurs in my clients when they see their comprehensive financial plan begin to work. It sets the stage for greater conversations. I get to answer fewer questions about the ups and downs of the market and instead, we get to talk about legacy and bigger goals. 

Each engagement with the Anchor team begins with a comprehensive financial plan. And while the expressed purpose of the plan initially is to understand where all of the client’s assets are, in the hands of a trusted advisor, a comprehensive financial plan can become more than a transitional tool that takes you into retirement. Instead, it becomes a launchpad for dreaming. 

If you are ready to take a comprehensive look at your finances, including your beliefs about money, let’s talk.